• Oregon Allows Department Discretion in Extending Time of Payment Under Installment Plans Created Pursuant to 2009 Tax Amnesty Program
  • May 11, 2011
  • Law Firm: Chamberlain Hrdlicka White Williams Aughtry - Houston Office
  • Pursuant to L. 2011, S305, effective 09/29/2011, Oregon permitted its Department of Revenue (“Department”) to grant extensions beyond a previously mandated date of May 31, 2011 for tax amnesty program participants utilizing an installment plan. The extension may be granted for good cause.

    During 2009, Oregon conducted its first ever tax amnesty program, whereby the state attempted to encourage taxpayers to file overdue or amended returns by waiving any applicable penalties and half of the interest.  Pursuant to the program, taxpayers unable to pay the full amount owed were eligible to apply for an installment payment plan. However, a stringent deadline of May 31, 2011 was enacted, by which time all payments required by the amnesty program’s installment plans were due.  Failure to abide by the terms of the legislation and complete the payment plan by May 31, 2011 would require payment of all unpaid tax and reinstatement of full penalties and interest. Since a number of taxpayers were failing to maintain the payment schedules established during the 2009 amnesty program, the current amendment was enacted.

    The intent of the amendment is to allow the Department discretion and leeway to extend payment schedules set by the 2009 amnesty program where good cause is shown for not making payments.